HD DVD means High-Definition DVD, the so called "next generation DVD". The capacity of an HD-DVD disc is 15 GB (single layer) and 30 GB (dual layer). HD-DVD supports 1920 x 1080 video resolution, and Microsoft VC-1, MPEG-2, MPEG-4 AVC (H.264) video formats. Since the manufacturing of HD-DVD requires little new investment to existing DVD processes, it makes HD-DVD format cheaper than Blu-ray at the beginning.